NEW YORK (TheStreet) -- Magnachip Semiconductor (MX) is tumbling in extended trading on the announcement its chief financial officer Margaret Sakai had resigned and that its accounting review would be delayed.
After the bell, shares are down 7% to $13.50.
The semiconductor manufacturer said Sakai had resigned as CFO and executive vice president, effective immediately, and that senior vice president and chief accounting officer Jonathan Kim would stand as interim CFO until a replacement had been found.
The board is currently commencing its search for a permanent replacement.
Magnachip also reaffirmed its March 11 announcement that it has commenced an internal review of its accounting practices and that the process remains ongoing.
"While substantial progress has been made, it is expected that this review and work with regard to the previously announced restatement will take several more months, and as a result the Company will be postponing its annual investor conference to a date to be announced after the filing of its Annual Report on Form 10-K," the company said in a statement.
TheStreet Ratings team rates MAGNACHIP SEMICONDUCTOR CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAGNACHIP SEMICONDUCTOR CORP (MX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."